Kroger to buy Harris Teeter for about $2.44B in cash, expand store base whole reducing costs
CINCINNATI – Kroger says it has agreed to buy Harris Teeter Supermarkets Inc. for about $2.44 billion in cash.
Kroger will pay $49.38 for each of its rival supermarket chain’s shares. The price represents a 2 per cent increase over the company’s Monday closing stock price. The deal has been approved by both companies’ boards.
Matthews, N.C.-based Harris Teeter operates 212 stores in southeastern and mid-Atlantic markets, along with a pair of distribution centres and a dairy facility. Its fiscal 2012 revenue totalled about $4.5 billion.
Cincinnati-based Kroger Co. says it expects the deal to result in cost savings of $40 million to $50 million over the next three to four years.
Kroger will finance the deal with debt and plans to assume Harris Teeter’s outstanding debt of about $100 million.
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